California Attorney General Rob Bonta has issued a consumer alert in response to the recent state of emergency declared after a 7.0 magnitude earthquake in Northern California. The alert emphasizes that price gouging during such emergencies is illegal under Penal Code Section 396.
"California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies," stated Attorney General Bonta. He urged residents who encounter or fall victim to price gouging to report it online at oag.ca.gov/report or contact local authorities.
The law prohibits charging prices that exceed pre-emergency levels by more than 10% for existing items or more than 50% over cost for new items sold post-emergency declaration. This applies to sellers of food, emergency and medical supplies, building materials, gasoline, and services like repair, cleanup, transportation, freight storage, hotel accommodations, and rental housing. Exceptions are allowed if costs have risen for businesses.
Violators face criminal prosecution with penalties including up to one year in county jail and fines up to $10,000. Civil enforcement actions can also be pursued with penalties reaching $2,500 per violation along with injunctive relief and mandatory restitution. Both the Attorney General and local district attorneys are empowered to enforce these laws.